Case Study Of Eskom

Eskom’s monopoly as energy supplier

Eskom’s overall affect on South Africa is significant. Eskom is the sole supplier of electricity in South Africa. Our country’s development depends on the availability of electricity for its economic growth and job creation.

I believe that Eskom’s Monopoly on South African electricity supply needs to come to an end if we want to obtain a sustainable efficient supply of electricity.

Eskom has a huge responsibility towards our country’s economic development and our natural environment. The state-owned company is solely responsible for generating, transferring and circulating electricity to various customers, both residential and corporate. The lack of electricity supply to consumers of various types could hinder economic growth and development and cause an increase in unemployment.

The need for a more competitive electricity supply market has never been more essential. A more competitive environment would motivate the suppliers to out perform their competitor and provide excellent service which would lead to more sustainable electricity supply and a more efficient economic development path.

The monopoly that Eskom exerts on our electricity sector is preventing sustainable solution that can avoid a repetition of our current energy crisis. “The roots of the crisis can be traced back to the government’s unwillingness to implement the types of reforms envisaged in the early 2000s. It said Eskom should not build new generating capacity, which should be done by the private sector.” (Greyling